While the market’s gaze is primarily fixed on Nvidia’s highly anticipated earnings, a multitude of other stocks are actively making significant moves. Among them, we’ve pinpointed a select group of companies showcasing rising dividend yields. The average S&P 500 dividend yield currently hovers at 1.3%. In the current volatile market environment, more tech companies are choosing to pay dividends, and Ameriprise Financial predicts that pent-up demand could propel S&P 500 dividend growth.
A dividend yield, representing the percentage of a company’s share price that it pays out in dividends annually, typically rises for one of two key reasons: either the company has boosted its per-share payout, or its share price has declined. Given that the following companies have not issued any dividend announcements today, their escalating dividend yields are directly attributable to a lower stock price.
To properly assess these situations, it helps to investigate the underlying factors pressuring the share price lower. This helps discern whether the decline is due to a company-specific event warranting concern, or if it reflects a broader sector or market trend.
Here’s an overview of 10 dividend stocks trading lower today and potentially giving investors a discount on dividend paying stocks.
Rising Yields
Water technology stock A.O. Smith Corp (NYSE: AOS | AOS Price Prediction) Corp stock is falling by a sharp 5% today, pushing the dividend yield higher to 2%. A.O. Smith pays a quarterly dividend of $0.34 per share. The company recently reported its Q1 earnings report, including a 2% sales decline, owing to weakening water heater volumes in North America coupled with falling sales in China. Wall Street analysts are mixed on the stock; half have a “hold” rating, with an average price target of $72, reflecting 10% upside potential.
JM Smucker (NYSE: SJM) is off 1.7% today for a dividend yield of approximately 3.8%. The company announced it is shuttering a Hostess plant in Indiana by 2026 amid cost-cutting moves. The stock pays a quarterly dividend of $1.08 per share. Wall Street analysts are largely bullish on shares, with an average price target of $120 per share compared with current levels of below $112.
Southern Co (NYSE: SO) is shaving off 1.9% of its value today for a dividend yield of approximately 3.3%. This energy company pays a quarterly dividend of $0.74 per share. Wall Street’s average price target is approximately $94 per share, reflecting upside potential of about 5%.
Utility stock Black Hills (NYSE: BKH) is losing 1.8% on the day, pushing its dividend yield up to 4.6%. The company reported earnings earlier this month with mixed results. Wall Street analysts have an average price target of $63.50 on the stock, reflecting 10.2% upside potential. The company pays a quarterly dividend of $0.676 per share.
Electric natural gas utility stock Avista (NYSE: AVA) is down 1.4% today, sending the dividend yield to just over 5%. Avista has a solid history of raising its dividend, which currently hovers at $0.49 per share. Avista’s Q1 earnings fell short of consensus estimates. AVA stock has been trading in a narrow range over the past 12 months.
Commerce Bancshares (Nasdaq: CBSH) stock is lower by 1.0% today. The company, whose Q1 earnings surpassed expectations, pays a quarterly dividend of $0.275 per share. Wall Street analysts advise holding the stock, with an average price target of $64.60, within a stone’s throw of the current price.
Equity Lifestyle Properties (NYSE: ELS) is down 1.6% on the day, pushing the dividend yield to 3.2%. ELS recently announced its Q2 dividend of $0.515 per share. Wall Street analysts are moderately bullish on ELS, with an average price target of $74.13, reflecting 17% upside potential.
Eversource Energy (NYSE: ES) is losing 1.7% on the day, for a high dividend yield of 4.7% as traders contemplate buying the dip. The company recently reported a Q1 revenue beat while earnings were as expected. Eversource Energy pays a quarterly dividend of $0.7525 per share. Analysts are bearish on the stock, with an average price target of $62.60, below current levels.
Semiconductor stock Microchip Tech (Nasdaq: MCHP) is falling by 0.55% today for a dividend yield of 3.1%. The stock could be retreating due to the upcoming earnings report from industry peer Nvidia. Microchip pays a quarterly dividend of $0.4550 and has an impressive history of raising its payout annually. MCHP stock has been on a tear, rising 45% since mid-April, and today’s decline could be due to some profit taking.
ONE Gas (NYSE: OGS) is sinking by nearly 2% today, sending the dividend yield to roughly 3.6%. The company reported solid Q1 results and announced a public offering of 2.5 million shares. ONE Gas pays a quarterly dividend of $0.67 per share. Wall Street analysts are split between buy and hold ratings, with an average price target of $75.97, suggesting there’s runway for slight gains.
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